Short-selling firm Hindenburg Research, which gained national attention for exposing fraud at electric vehicle startup Nikola, announced its closure on Wednesday. Founder Nate Anderson wrote in a post that he has decided to disband the company and wind down operations.
Anderson’s decision comes after completing the final pipeline of ideas the company was working on. He cited the recent Ponzi cases completed as the reason for his decision.
Hindenburg Research gained prominence in 2024 when it uncovered accounting irregularities at data center company Super Micro Computer, forcing the company to delay filing some financial statements. The firm also took on two of the world’s most powerful investors, Indian conglomerate Adani and Icahn Enterprises, in its 2023 reports.
In 2020, Hindenburg Research exposed failings at Nikola, including a notorious incident where the company rolled a prototype of its electric semi-truck downhill. Nikola’s founder and CEO Trevor Milton was later sentenced to four years in prison after being found guilty of misleading investors.
The company also criticized online orthodontics startup SmileDirectClub in 2019, stating that it was “carelessly cutting corners in a field of specialized medicine, putting customer safety at risk.” SmileDirectClub went out of business in late 2023.
Anderson plans to release materials and videos detailing the company’s model and investigative process, with the goal of empowering someone who shares his passion and is willing to shed light on important subjects despite obstacles.
Source: https://finance.yahoo.com/news/short-selling-firm-hindenburg-research-is-closing-up-shop-221608915.html